More and more is being said recently about the Brexit agreement. Last week, the president of the European Central Bank (ECB) pointed out that the uncertainty caused by Brexit could potentially pose a greater threat to financial stability. Meanwhile, a spokesman for the British Prime Minister suggested that there was a tangible progress in talks about Brexit, and certainly an agreement would be reached.
Yesterday the comments of the spokesperson of the Prime Minister of the United Kingdom appeared, which he admitted that he remains in a constant process of negotiations with the EU. In his opinion, one can see the real progress in the Brexit talks and certainly will be able to reach an agreement even though "there are still many unresolved issues". He also mentioned that Theresa May is trying to make a statement to Parliament on the Brexit case, but he is waiting for the consent of the parliamentary authorities to submit such a statement. It should also be clearly stated that Theresa May's team seems to want to push through a nationwide customs agreement in Great Britain. It is through these EU pressure that representatives say no agreement was reached at the weekend. Now this is something that the EU also has a problem with because it believes that there should not be any British backstop until UK officially leaves the EU.
Meanwhile, the European Commission spokesperson, Margaritis Schinas, stated that probably no further discussions on Brexit will take place before Wednesday, when the Brussels summit will take place. Until then, there are no planned conversations. He noted, however, that there are still contentious points in the negotiations between the EU and the United Kingdom: "It is a bit suggestive that we may not achieve much progress in the talks that will take place during the EU's Wednesday summit in Brussels. The discussions to be held this month are aimed at creating a platform to sign the agreement in November, but now the Irish border is a key point in which both sides are unable to find common ground" - commented the spokesperson of the German government.
The global investors have to wait untill Wednesday for more details, so let's now take a look at the GBP/USD technical picture at the H4 time frame. The market gapped down after the weekend, but quickly bounced from the level of 1.3081 and filled the gap. The local high was made at the level of 1.3180, just below the resistance zone. Currently, the price is moving sideways as the investors await the news from the Brexit negotiations. The neares support is seen at the level of 1.3132. The momentum is neutral, so it supports the short-term neutral outlook for the GBP.
